Eastwind Maritime, affiliates, file for bankruptcy
Shipping company Eastwind Maritime Inc., along with more than 50 affiliates, filed for Chapter 7 bankruptcy protection in New York, according to court documents. The documents did not give a reason for the bankruptcy filing beyond saying “…in the judgment of the board of directors, it is desirable and in the best interests of the company, its creditors and other interested parties that the company file a petition for relief and commence a case under the provisions of Chapter 7 of the Bankruptcy Code.”
An attorney for the company did not immediately return a call for comment.
The corporation listed assets and liabilities in the range of $500 million to $1 billion. Related affiliates include Kura Shipping Ltd and Probulk Inc. The cases are being heard by Bankruptcy Judge Allan Gropper.
Eastwind Maritime entered a deal with Chiquita Brands International Inc. in May, 2007, in which Chiquita sold 12 refrigerated cargo vessels to Eastwind for $227 million, then leased them back. The vessels transported about 70 percent of Chiquita bananas shipped to core markets in Europe and North America.
Bryan Brown, a spokesman for Chiquita did not immediately have information on the bankruptcy.
Prior to the agreement with Chiquita, Eastwind operated a fleet of 105 ships — 68 of which it owned — including refrigerated fruit carriers, freezer vessels, bulk carriers, product tankers and container ships, according to a Chiquita press release.
The Eastwind Maritime website has a notice reading: “We are currently updating our website. Thank you for your patience.”
SHIPPING
The shipping industry was awash with cash during the recent economic boom and ordered new ships faster than the world’s shipyards could build them — order books at ship yards stretched to three years at the height of the boom — and paid top dollar for those ships.
With the collapse of the market last September, many ship owners either can’t get loans to pay for those ships, or have found themselves paying off loans that are far greater than the present value of their ships.
On June 17 marine fuel supplier Bunkers International Corp sued Eastwind and a couple of subsidiaries in the New York Southern District Court.
A search of court documents show that Eastwind is engaged in a number of lawsuits as plaintiff or defendant. The company filed a lawsuit against Desan Shipyard in Istanbul in December last year during the height of the credit crisis.
The Chapter 7 case is In re Eastwind Maritime Inc, US Bankruptcy Court, Southern District of New York, No. 09-14047.
Source : Reuters
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